Unicorns are flamboyant but unprofitable!

Out of the 10 unicorns, only two are generating profits. Even the biggies of Flipkart and Snapdeal have been bleeding because of the huge discounts doled out by them in an effort of retaining customers.

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Unicorns are flamboyant but unprofitable!
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The combined value of the 10 unicorns of India is pegged at over $1 billion. However, the massive outlays fail to translate into profitability. Out of the 10 unicorns, only two are generating profits. Even the biggies of Flipkart and Snapdeal have been bleeding because of the huge discounts doled out by them in an effort of retaining customers. The costs related to marketing and advertising, too, are eating into revenues.

Flipkart

This organization enjoys the status of being the biggest e-commerce firm in India with a valuation of $10 billion. Flipkart registered a loss of Rs. 2,306 crore in FY 2015-16, although for while they are claiming to be hitting profit.

Snapdeal

The total loss of Snapdeal for the FT 2015-16 has been Rs. 3,316 crore.

Hike

Hike is a startup founded by Kavin Mittal, son of Sunil Bharti Mittal of telecom services provider Airtel, with around 100 million users. The valuation of the company is pegged at $1.4 billion, although they are yet to release any statement regarding their profitability.

RenewPower

The newest entrant in the unicorn club is RenewPower. The valuation of the firm is $2 billion.

Mu Sigma

This firm deals with data analytics and one of the two firms to have registered profit in FY 2015-16. The profit posed has been of Rs462.9 crore, a 22% annual increase.

InMobi

This is the second unicorn that is profitable. According to the information provided by the company, the company registered profit in the fourth quarter (October-December) of 2016.

Paytm

This company claimed in September 2015 that it is on the way of making profit by 2017.

Ola

Ola is one of the most important unicorns and fierce rival of Uber, which claimed last November that it will turn profitable in three years.

Shopclues

This is another firm, which is not yet profitable but claims to be making profit by the near future. If this comes true, the company would become India’s first e-commerce firm to become profitable by 2017.

Zomato

This is India’s largest restaurant search portal as of February 2016. Zomato has received $225 million in funding so far.